Hanjin ‘white knight’ should be wealthy – DTI
Credit to Author: TYRONE JASPER C. PIAD| Date: Mon, 22 Apr 2019 16:17:25 +0000
The firm that takes over Hanjin Heavy Industries and Construction Co. Philippines should have enough working capital to revive the bankrupt shipbuilding company and settle its debts, a Department of Trade and Industry (DTI) official said.
Trade Undersecretary Ceferino Rodolfo said Hanjin’s ‘white knight’ would need $10 million per month to restore its regular operations, assuming the Korean enterprise would produce 8 vessels per year.
But if the firm taking over would maximize the capacity of Hanjin and produce around 18 vessels annually, it would require $200 million, Rodolfo said. This is on top of
Hanjin’s $412-million debt to five major local banks and another $900 million to creditors in South Korea.
Rodolfo explained such money was necessary given the range of operations Hanjin had before it filed for bankruptcy in January this year. “It (Hanjin) is a very specialized facility that can produce at this point only the ultra large container carriers, container ships,” he said.
He described the company’s facility as one of the best he had seen, taking note of its giant overhead cranes.
At any rate, Rodolfo said Hanjin could be retrofitted based on the white knight’s preference, hinting lesser cost.
The Trade official also hoped that whoever takes over Hanjin could compete with other shipbuilders in the world, especially China which according to him is currently very well-positioned in the industry.
”In the long term, the firm should be able to compete with China,” he said.
The DTI and other government agencies are actively searching for Hanjin’s white knight which until remains elusive. Earlier, the DTI said several firms from China, Japan, US and Korea visited the shipyard but no agreement was reached.
Last month, Dutch firm Damen Shipyard Group also went to the facility, bringing in technical experts to study how it could possibly fit into the company’s current plans. Since the visit, the company has yet to report again to DTI.
Razon-led International Container Terminal Services Inc. (ICTSI) is also interested in taking over Hanjin, saying it was developing a masterplan that will be presented to the shipbuilder’s local creditors.
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